CiCM 21st August 2023

NEWS IN CHINA

Water Resource Ministry revealed reasons behind Haihe floods: China’s Ministry of Water Resources (MWR), in a press conference on Monday, said that the floods that hit the Haihe River Basin exposed weaknesses in the monitoring and forecasting capabilities for floods. From July 28 to August 1, 22 rivers in the Basin experienced above-warning floods, which has been recorded to be the worst to hit the northern China basin since 1963. The floods also resulted in the death of 61 people. While the Ministry noted that the flood control system in the Haihe Basin, consisting of reservoirs, river channels, embankments and flood storage, played a key role in combating the floods, it also exposed weaknesses in the system. According to the Ministry, this includes weak rain monitoring and forecasting, inadequate flood control reservoirs, land subsidence incidents, insufficient flood storage and detention areas, and limited modern technology support. To enhance flood resilience, the Ministry said that it plans to restore damaged projects swiftly, increase flood storage capacity, improve river flow and drainage, bolster urban flood control, construct digital twin watersheds, and strengthen legal mechanisms to prevent encroachments on flood control infrastructure.

Central Bank cuts key one-year lending rate: The People’s Bank of China has cut its one-year loan prime rate (LPR), a market-based medium-term lending benchmark for corporate loans, by 10 basis points from 3.55 percent to 3.45 percent. However, the five-year LPR, on which the mortgage rates are based, remained unchanged at 4.2 percent. There was speculation that the loan prime rates would face cuts, after the PBOC decided to reduce the one-year medium-tern lending facility (MLF) by 15 basis points last Tuesday, the 15^th of August. In June, the LPR for both one-year and five-year period was cut by 10 basis points. Analysts said that the lowering of the one-year LPR will help reduce financial costs for companies, boost consumption momentum and improve credit demand. However, the central bank’s decision to keep the five-year LPR unchanged affected stock markets, as key indices fell. Meanwhile, post the central bank decision, the yuan weakened against the US dollar by 0.4 percent to 7.3094 per US dollar.

Ministry official spying for CIA nabbed, says Chinese espionage agency: The Ministry of State Security, China’s top anti-espionage agency, announced that it arrested a Chinese ministry official, surnamed Hao, after finding evidence that the suspect conducted espionage activities against China for the US’s Central Intelligence Agency (CIA). In the WeChat post published by the Ministry, it said that 39-year-old Hao was recruited by the CIA while studying in Japan. Hao, while applying for a US visa, got acquainted with Ted, a US embassy official in Tokyo. Ted maintained a close relationship with Hao through gifts and dinners. Gradually, Ted introduced Hao to his colleague Li Jun, after which they both maintained close contact. The Ministry’s post said that Li Jun later revealed he was a member of the CIA’s Tokyo station and recruited Hao, asking him to work in a core ministry in China, which the WeChat post did not name. Hao signed an espionage agreement with the US and underwent training and assessments from them. Post their China return, Hao worked in a “nation-level ministry,” met CIA personnel and leaked confidential Chinese information and collected espionage funds. On August 10, the Ministry had announced the arrest of a Chinese employee at an arms company, who was recruited by the CIA while on a study trip to Italy.

Chinese trade with BRICS nations records increase: China’s foreign trade with its fellow BRICS member states, Brazil, Russia, India and South Africa, saw a year-on-year increase of 19.1 percent in the period between January to July of this year, according to data released by China’s General Administration of Customs (GAC). The trade value with BRICS states rose to 2.38 trillion yuan ($326.85 billion), accounting for 10.1 percent of China’s total foreign trade value. Chinese exports to other BRICS nations showed a year-on-year growth of 23.9 percent, totalling 1.23 trillion yuan, while imports totalled 1.15 yuan, displaying a growth of 14.3 percent. The statistics also showed how Chinese private companies have expanded their market share in these countries, by recording a year-on-year growth of 29.4 percent, with trade value amounting to 1.36 trillion yuan. This accounted for 57.1 percent of the total trade between China and other BRICS countries during the first seven months of 2023. The GAC data also revealed that the total trade between China and other BRICS nations totalled 3.69 trillion yuan in 2022.

Chinese naval hospital ship docks at Honiara, Solomon Islands: Chinese Navy’s hospital ship “Peace Ark” arrived at Honiara, the capital city of Solomon Islands, its fourth stop in the five-nation tour of Pacific Island countries, named “Mission Harmony 2023.” The naval ship is on a seven-day visit to the South Pacific nation, marking the first visit of such a vessel to Solomon Islands, and is set to provide medical services and impart medical knowledge to local communities. The ship has 26 clinical departments and 7 auxiliary diagnosis departments to carry out diagnosis and treatment for people in the island nation. Apart from this, several medical teams are also set to be sent to the National Referral Hospital in Honiara and other local communities to extend medical services. The Prime Minister of Solomon Islands, Manasseh Sogavare visited the hospital ship and expressed appreciation to the Chinese government and people for the goodwill visit.

Record-breaking tunnel drilled in Beijing: China has drilled a tunnel through for an expressway in Beijing, which makes it the longest expressway tunnel in China created using the shield-tunnelling method, a technique where a shield is used to cut through the earth to create a tunnel while providing cover to the workers excavating. The 16.07 meters shield used for the excavation was the biggest in diameter among those used in China, weighing 4,500 tonnes. The shield-tunnelling machine used was designed and made by Chinese enterprises. The Beijing Capital Highway Development Group Co., Ltd., which is implementing the tunnel project, said that the tunnel, with a total length of 7.4 kilometres, is designed to have a two-way six-lane expressway on the middle level, with a smoke vent on the upper level and evacuation and rescue routes on the lower level. The tunnel is a part of Beijing’s east sixth ring road project and is also the deepest underground tunnel in Beijing.

SOCIAL MEDIA CHATTER IN CHINA

Coco Lee controversy impacts media company market share after social media outrage: The public outrage by netizens against the producers of popular music reality show Sing! China, Star CM Holdings, and calls to boycott the show, caused the shares of the company to plunge to record low ever since its listing last December. The outrage was sparked by an audio clip in which late Hong Kong-born pop icon Coco Lee alleged that the showrunners mistreated and bullied her. The nine-minute audio clip became viral on Chinese social media, with users criticising the producers of the show for badly treating an internationally recognised artist. In the clip, Lee, who participated in the show as one of the coaches, is heard criticising and questioning the show’s system. While the broadcaster of the show, Zhejiang Media Group, has assured viewers it would look into the matter, social media users have expressed anger over the way Lee was treated. One user noted how Coco Lee was never mistreated in the West, where she found fame for her performance in the Oscars in 2001, but faced bullying in her homeland. Another user demanded that the show issue an apology for their alleged misbehaviour.

INDIA WATCH

The statistics on China's foreign trade with other BRICS nations has seen Chinese media hailing its economy's role in facilitating a global economic recovery post-COVID, and consolidating the BRICS mechanism's role as a powerful force in the international system. Among BRICS nations, China continues to be India’s biggest trading partner in volume and value. Despite hostile diplomatic relations, India-China trade exceeded $135 billion last year, with India experiencing a trade deficit of over $100 billion. Russia has also emerged as a significant trading partner for India over the last two years. The volume of trade between the two nations between April 2022 and February 2023 was US$45 billion. The period between April and July 2023 saw Russian exports to India double to $20.45 billion. A third of India's bilateral trade relations with Russia consists of mineral products, including fuel. Bilateral trade between India and Brazil reached $15.20 billion in 2022, marking a surge of 115% compared to 2020. Bilateral trade with South Africa reached around $20 billion last year, with the fellow BRICS member being one of India's key trade and diplomatic partners in Africa. Attaining the level of trade achieved by China within the BRICS bloc would be an uphill task for India. This would necessitate stimuli from relevant economic and financial institutions in India, private participation, improved trade routes between the countries, and, most importantly, the resolution of existing diplomatic tensions. The deliberations surrounding the creation of a common BRICS currency and promoting ‘alternative transfer mechanisms’ could provide an impetus for robust trade to happen between BRICS nations. This also happens to be a pertinent proposal as BRICS collectively aspires to counter Western hegemony in the international financial and trade apparatuses, and also ward off sanctions and restrictions that members like Russia and China presently face. However, India still appears to be wary of this proposition of a common currency, instead preferring increased trade in national currencies.As India gears up for another BRICS summit, it must also focus on non-economic alternatives like nurturing warm diplomatic ties, providing institutional and bureaucratic support to key BRICS institutions, and leveraging its positive relationships with major powers to ensure BRICS position as an influential multilateral alliance.

Prepared By

Prejomon Sunny Chummar

Prejomon Sunny Chummar holds a Master's degree in International and Area Studies from MMAJ Academy of International Studies, Jamia Millia Islamia, with a Bachelor's degree in Journalism and Mass Communication from EFLU Shillong. His interests revolve around the intersection of cinema, culture, and politics, including the intricate dynamics of soft power politics. Additionally, his scholarly interests encompass the rich histories and cultures of China, Russia and Central Asia. With a keen passion for cinema and literature, he is an ardent cinephile and devoted reader.